A Tale of Two Cities
Posted Nov 16, 2011 in Industry News
Because of increasing labor costs, it's only a matter of time before China loses its edge in the offshoring market. This year, China had a 15% rate of inflation significantly increasing the cost of living so, for each of the next five years, the government plan calls for 13-14% hikes in annual pay.* Bargain-hunting foreign interests have already begun an exodus as they move their orders to factories in India, Thailand, East Africa, Cambodia and Vietnam.
Right now, there are dozens of dental laboratories in the major export cities of Zhuhai, Shenzhen and Beijing, many vying for a piece of the offshore market. Not all of them adhere to strict operating standards and use of certified materials, but some of them do and that is where our tale of two cities begins.
In September, prompted by an invitation from ProLab Solutions, LMT's Judy Fishman, along with industry peers, visited two Chinese dental laboratories. See her editorial, The Wild, Wild East by clicking...